KARACHI: Karachi Electric Supply Company has reaffirmed its spirit of turning around the utility, as a more operationally efficient and customer friendly organization. One of the key steps taken in this direction has been the designing of a severance scheme for its employees, who by definition are not core to the operation and function of the utility service provider.
These positions identified as non-critical or non-core in nature, encompass approximately 4,000 employees, who were enrolled in the following positions: Bill Distributors, Junior Office Assistants, Office Attendants, MT Drivers, Sanitary Workers, Security Guards, and other miscellaneous positions, a KESC release said on Saturday.
KESC, being a socially responsible organization, aims at improving the environment which it operates in, primarily by increasing its service orientation towards its customers and by aiding in, enhancing the personal and professional standards of its employees.
Given this philosophy a decision was taken to make a substantial investment of over Rs.5.35 Billion, for the benefit of the above non critical roles within KESC.
Despite the financial challenges surrounding the company, this investment decision was taken in the larger interest of the 4,000 employees, who will be given an upfront gross payment of a minimum of Rs.700, 000 to a maximum of Rs.4, 735, 000.
This severance scheme has been designed keeping in mind the maximum financial benefits that can be extended to the respective employees, and has been presented before the Sindh High Court on Wednesday on the court orders.
The CBA through its advocate sought time to go through the package. Needless to add that if the scheme is not accepted by the employees voluntarily, KESC reserves the right to proceed further for retrenchment as per the law.
This step by the power utility is being taken to further its endeavors in focusing upon its core responsibilities of generation, transmission and distribution of electricity.
Besides, prompt attendance of public complaints and efficient action for repair and maintenance in minimum possible time are also core areas of activity. These are the core jobs and skill sets which KESC will be focusing on, in the future to improve itself internally and externally.
According to the scheme, the employees under 58 years of age would be granted ex-gratia payment of four basic salaries plus one basic salary for each of their remaining years of service+ADs- while those between 58 to 60 years would be given one basic salary for each remaining month of their services. Provident fund and gratuity would be paid according to entitlement. Leave encashment, medical allowance would be paid equal to 7.5 basic salaries and apart from this free electricity entitlement would also be monetized for a period calculated over the next five years and added up in the under the new scheme.
As stated, on the completion of this scheme, over Rs.5.35 billion rupees will be disbursed with the following break up, gratuity - approximately Rs.1.05 billion, leave encashment payment Rs.79.2 million, medical payment Rs.262 million, electricity monetized benefit payment Rs.782 million, provident fund payment Rs.1.083 billion, ex-gratia payments Rs.1.976 billion and additional ex-gratia payment involves Rs.111 million.
According to calculations, 44+ACU- of the stated number of employees under this scheme would bag an amount ranging from approximately Rs.1,000,000 to Rs.4,735,197.
Of the 4,000 identified non-core employees falling under the Severance Scheme, 189 employees are those who have up to two years of service left with the company, 418 have 3 to 6 years of service, 490 have 7 to 10 years, 760 have 11 to 15 years, 703 have 16 to 20 years, 699 have 21 to 25 years of service, 567 have 26 to 30 years of service, 222 have 31 to 35 years, and, 6 employees have 36 to 38 years of service left with the company.
The above decision has been taken by KESC as an independent action, keeping in view the philosophy of the management to create value and a conducive operating environment, while remaining to be a socially
responsible organization.
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